What is the most important automatic stabilizer? a. government spending b. the tax system c. welfare...
What is the most important automatic stabilizer?
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Homework Answers
b. Tax system -is correct
Tax system is the biggest and most important automatic stabilizer
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What is the most important automatic stabilizer?
a.
government spending
b.
the tax system
c.
welfare...
Classify the actions below as either discretionary spending or an automatic stabilizer. Place each item into...
Classify the actions below as either discretionary spending or an automatic stabilizer. Place each item into one of the two bins. The president implements cuts in government spending in order to balance the budget A law is enacted that increases The government cuts taxes to Medicare coverage stimulate consumer spending The government increases tax rates to prevent inflation A reduction in tax revenue that results from a recession reducing personal income and corporate profits An increased number of layoffs Economic...
Which one of these is NOT an example of an automatic stabilizer? Select one: O a....
Which one of these is NOT an example of an automatic stabilizer? Select one: O a. Interest rates tend to fall during recessions b. People pay more income tax when the economy is growing and their income rise c. The government typically increases spending on highways during expansions d. Wages'tend to fall when unemployment is high e. Unemployment compensation tend to rise during recessions
Which of the following is not considered an automatic stabilizer? A. food stamp program for people...
Which of the following is not considered an automatic stabilizer? A. food stamp program for people with low incomes B. welfare program for families with dependent children C. Medicaid, a health program for the poor D. financial assistance for disabled people E. unemployment programs that pay benefits to those who lose their jobs If the MPC is 0.75, then the spending multiplier is: A. -o.57 B. 0.57 C. 4.0 D. -4.0 Which of the following Federal Reserve policy tools is...
1) During an expansion, automatic stabilizers cause the federal deficit to a) remain unchanged. b) either...
1) During an expansion, automatic stabilizers cause the federal deficit to a) remain unchanged. b) either increase or decrease. c) increase. d) decrease. 2) An example of an automatic stabilizer is a) changing the tax laws to increase the marginal tax rates. b) the food stamp program. c) the indexation of social security benefits to the consumer price index. d) the interest the government pays on loans. 3) Which of the following is a correct sequence of events during a...
Of the following examples, which is an example of an automatic fiscal policy stabilizer? A) Tax...
Of the following examples, which is an example of an automatic fiscal policy stabilizer? A) Tax revenues fall after Congress decreases corporate tax rates. B) Congress decides to cut spending on national parks. C) Congress increases individual income tax rates. D) Tax revenues increase as real GDP increases. From a bank’s perspective, which of these scenarios would be the MOST advantageous for it? A) Jacob pulls out cash from his account every month to pay all of this bills in...
12. The progressive income tax and transfer payments are the two main: A) automatic stabilizers. B)...
12. The progressive income tax and transfer payments are the two main: A) automatic stabilizers. B) monetary policy tools. C) long-run aggregate supply management tools. D) tools for balancing the budget. 13. Automatic stabilizers include all of the following EXCEPT: A) unemployment compensation benefits. B) welfare payments. C) national defense spending. D) tax revenues. 14. The implementation lag is: A) usually less than 12 months. B) the time it takes policymakers to recognize a problem. C) the time it takes...
QUESTION 1 Which of the following is an example of an automatic fiscal policy stabilizer? a....
QUESTION 1 Which of the following is an example of an automatic fiscal policy stabilizer? a. Tax revenues fall as real GDP decreases. b. Congress decides to cut spending on national defense. c. Congress cuts individual income tax rates. d. Tax revenues rise after Congress raises corporate tax rates. QUESTION 7 When a country's economy is producing at a level that is less than its potential GDP, the standardized employment deficit will show a ________ than the actual deficit. a....
10.) Which of the following is an example of an automatic stabilizer? A. The reduction in...
10.) Which of the following is an example of an automatic stabilizer? A. The reduction in the money supply that occurs as banks become less willing to make loans during a recession B. The reduction in real wages that occurs as the economy goes into a recession C. The increase in government spending that occurs as the result of new spending bills passed by Congress D. The rise in tax revenue that occurs as a result of growth in real...
1o). Automatic stabilizer in che conomy serve an important role in (A) increasing the length of...
1o). Automatic stabilizer in che conomy serve an important role in (A) increasing the length of the business gde (B) balanding the budget Q increasing a budget surplus in a recession. (D) decreasing net tax revenue during economic growth (E) lessening the impact of a recession. w) In a recession, expansionary monetary policy is designed to (A) decrease AD so that real prices will decrease, which is good for de conomy (B) increase AD, which will increase real GDP Այվ...
1. If the economy is at full employment, increases in government spending: A) have a multiplier...
1. If the economy is at full employment, increases in government spending: A) have a multiplier effect on equilibrium output. B) have no effect on the aggregate price level. C) are primarily absorbed by price increases. D) reduce aggregate output. 2. Which of the following measures is NOT an example of discretionary fiscal policy? A) The unemployment compensation program pays out more money as unemployment rates rise. B) Tax rates are increased in the hope of slowing down the rate...
Classify the actions below as either discretionary spending or an automatic stabilizer. Place each item into one of the two bins. The president implements cuts in government spending in order to balance the budget A law is enacted that increases The government cuts taxes to Medicare coverage stimulate consumer spending The government increases tax rates to prevent inflation A reduction in tax revenue that results from a recession reducing personal income and corporate profits An increased number of layoffs Economic...
Which one of these is NOT an example of an automatic stabilizer? Select one: O a. Interest rates tend to fall during recessions b. People pay more income tax when the economy is growing and their income rise c. The government typically increases spending on highways during expansions d. Wages'tend to fall when unemployment is high e. Unemployment compensation tend to rise during recessions
12. The progressive income tax and transfer payments are the two main: A) automatic stabilizers. B) monetary policy tools. C) long-run aggregate supply management tools. D) tools for balancing the budget. 13. Automatic stabilizers include all of the following EXCEPT: A) unemployment compensation benefits. B) welfare payments. C) national defense spending. D) tax revenues. 14. The implementation lag is: A) usually less than 12 months. B) the time it takes policymakers to recognize a problem. C) the time it takes...
1o). Automatic stabilizer in che conomy serve an important role in (A) increasing the length of the business gde (B) balanding the budget Q increasing a budget surplus in a recession. (D) decreasing net tax revenue during economic growth (E) lessening the impact of a recession. w) In a recession, expansionary monetary policy is designed to (A) decrease AD so that real prices will decrease, which is good for de conomy (B) increase AD, which will increase real GDP Այվ...
1. If the economy is at full employment, increases in government spending: A) have a multiplier effect on equilibrium output. B) have no effect on the aggregate price level. C) are primarily absorbed by price increases. D) reduce aggregate output. 2. Which of the following measures is NOT an example of discretionary fiscal policy? A) The unemployment compensation program pays out more money as unemployment rates rise. B) Tax rates are increased in the hope of slowing down the rate...
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